The Inn & Tavern At Meander
Locust Dale, VA
Building
We are pleased to present an exclusive investment opportunity in Meander Inn LLC. The goal is to recapitalize this historic asset by increasing room capacity, creating an event venue, and revitalizing existing infrastructure by sourcing $3M in new Limited-Partner capital, attracting $4.5M in new debt to restructure or take-out existing debt. The Seller’s application for a special use permit to operate an event venue has been preliminarily approved based on future conditions. Our client’s financial plan anticipates key equity performance metrics over a five-year term: IRR of 23.5 percent, a 2.5x multiple and a cash-on-cash return of 20.2 percent, while servicing debt at an industry-standard ratio. Total capitalization is $340,376 per key on 10 additional keys (to 22), while recent comparable sales of like hospitality assets in the region show a per key range of $295,000 - $387,500. Alternatively, the property can be acquired outright for $3.5m.
The property is steeped in history as the farm was patented in 1726 by Col. Joshua Fry, who named it Meander because of the curve in the Robinson River running through it. A member of the House of Burgesses and professor at William and Mary, he also served as the commander of the Virginia militia. Col. Fry and his partner Peter Jefferson, father of Thomas Jefferson, surveyed and drew the first official map of the area known as Virginia. Fry commanded the Virginia Militia at the start of the French and Indian War, with George Washington as his second in command. After Col. Fry died from injuries sustained in travel to battle, Washington assumed command of the forces and as they say, the rest is history.
